Difficult to see SLR getting to 47c. From January 23, $1.50 high...

Difficult to see SLR getting to 47c. From January 23, $1.50 high this would be a 67% decline in price, but more importantly enterprise value would be down over 85% (SLR valued at $450 million, $300 million cash + gold, enterprise value $150 million).

I'm always happy to buy profitable, cash-flow positive, debt free, cashed up companies with a share price knocked around by the market. This is the difference between averaging down into these companies, versus indebted, cash-flow negative companies that often go to zero with time. The lower the share falls the lower the risk, and the higher the potential reward, given I estimate SLR has a present cash backing of about 33c per share.

During 2020, I averaged into ORE (now a component of AKE), I believe the share price got to about 60c, whilst they had 40c cash backing per share. So I surmised I had 33% downside, and unlimited upside. The closer the share price gets to cash backing the happier I'am to push unleveraged size. This is how you make big gains. I would hope to make 50% plus from SLR, whilst looking for a low market cap stock to push these capital gains into. At present I have allocated funds to ASM and LDR as potential multi-baggers, but time will tell.

Those stop loss charts say if you lose 50%, you need to make a 100% to get back to zero. But, on the flipside if you buy value down 50% and it goes back to where it was you make a 100% return. There are many ways to make money in the markets, but the easiest way in my opinion is to find a low risk long-term position (think profitable, nil debt) that has identifiable catalysts leading to a share price decline (lowered guidance due to transitory factors, share price rattling belated attempt at a takeover, sector out of favour) and push a significant amount of unleveraged funds into the stock, and have patience.